1Impact Ratings and What They Mean
Economic calendars rate events as low, medium or high impact. High-impact events – such as NFP, CPI, FOMC statements and central bank rate decisions – routinely move major pairs by 50–200+ pips and warrant specific risk management responses.
"In trading, discipline is more important than prediction."
Medium-impact events may cause brief spikes but often fade quickly. Low-impact events rarely move liquid pairs significantly and can generally be ignored by most trading styles.
Key Takeaways
- Understanding market psychology is crucial for consistent profits
- Risk management should always come before profit targets
- AI tools can enhance but not replace human decision-making
2Actual vs Forecast vs Previous
What moves markets is not the data itself, but the deviation from consensus expectations. When the actual figure is better than forecast, the affected currency typically strengthens; when it's worse, it weakens. The previous release provides context for trend direction.
"In trading, discipline is more important than prediction."
Before a high-impact release, decide in advance: if the data beats expectations, what will I do? If it misses, what will I do? Pre-planned reactions remove emotion from the moment.